Trek Mining Inc has announced the results of the feasibility study for its 100% owned Aurizona gold mine located in northeast Brazil. Trek Mining has awarded the project EPCM work to Ausenco Engineering Canada. Ausenco will provide EPCM services to the project from its Vancouver and Belo Horizonte offices and will be complemented by Trek Mining’s team.

• After-tax NPV5% of $197.1 million and IRR of 34% at $1,250/oz gold
• Low initial capital cost of $130.8 million, with LOM sustaining capital cost of $51.3 million
• LOM gold production of approximately 886,000 oz at an average gold recovery of 91%
• Average annual gold production of approximately 136,000 oz
• Average LOM AISC of $754/oz, placing Aurizona in the lowest quartile of the industry average
• Proven and Probable Mineral Reserves of 19.8 Mt at 1.52 g/t Au
• FS supports the viability of a mine restart plan with an upgraded 8,000 t/d crushing and grinding circuit to treat all ore types
• First gold pour targeted for year-end 2018

The FS is based on a new mine plan and updated Mineral Reserve estimate and outlines the design of an open-pit gold mine producing on average approximately 136,000 oz/y of gold, with an initial 6.5-year mine life and significant exploration upside, as demonstrated with recent drill results. Initial capital to fund construction and commissioning is estimated at a modest $130.8 million due to the company’s ability to leverage significant existing infrastructure in place at the brownfields mine site. Life-of-mine (LOM) sustaining capital is estimated at $51.3 million, including closure costs. All-in-sustaining costs (AISC) are estimated at $754/oz over the life of the project, which is in the lowest quartile of the industry average.

The FS was prepared by Lycopodium Minerals Canada with the support of three other globally recognized engineering firms: AGP Mining Consultants, SRK Consulting (Canada) and BVP Engenharia in partnership with Walm Engenharia e Tecnologia Ambiental.

Christian Milau, CEO, stated, “The feasibility study outlines a robust, construction-ready, open-pit gold mine that we can rapidly advance to production. This new mine plan supports the original conviction of Trek Mining’s executive team that we are developing a low-cost, high-margin operation that will provide substantial cash generation for the company, producing on average 136,000 oz/y of gold at respectably low all-in sustaining costs. Further, based on recent drill results we are confident that we can extend the mine life with exploration success, bringing additional value to both our shareholders and community partners.”

David Laing, COO, added, “This feasibility study reflects extensive engineering and technical work conducted over the last two years. With much of the necessary infrastructure already in place, initial capital to restart Aurizona is significantly less than other similar-size projects, resulting in quick project payback. With the feasibility study complete, we will turn our attention to engineering, procurement and construction activities to get Aurizona back into production.”